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how do i price

Posted by Inacio Portugal-Zone 10 (My Page) on
Mon, Jun 14, 04 at 7:15

I am so new to this, although I have been gardening most of my life.

My family and I moved from Toronto to Portugal almost a year ago. There are various properies which have been in my husband's family for at least 4 generations so we chose one overlooking the bay of Sao Martinho...breathtaking!!!
No elec. or running water, but we do hope to build a home there one day.

...long story short...we have created an organic oasis even after being repeatedly being told 'can't be done...you need chemicals...just grow potatoes...'

Now it seems there is an interest in buying our produce and by products. Here is my problem:
Nothing to compare it to here. I have grown produce not available here (seeds from UK) eg. yellow pear tomatoes, haricot vert, many types of lettuces and greens etc. etc.

All of my potential clients are foreigners who understand what organic growing means (agriculutra biologica in Portuguese)and so from that standpoint I don't have to do much marketing and rely on word of mouth. I'm only talking about a 2000 sq. ft. garden, with the potential of going as large as I want.

Is there any sort of magical mathematical formula that I might use or anything else to give me some guidelines when pricing?
Any advise or comments would be greatly appreciated.
Ohh yes-my Portuguese is pathetic, though my husband is fluent.


Follow-Up Postings:

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RE: how do i price

It would help you if you have some idea what your cost of production is. How many hours do you spend bringing a crop to marketing size? What do you think you should be paid per hour for your labor? Don't sell yourself cheap! What is the cost of your seed, water, soil amendments, and the rest? Remember that you don't just want to recoup your expenses but make a profit. A possible formula might be your total expense including labor and then double it for the retail price. You say that your potential customers are aware of the value of having fresh organic produce and much, if not all, of what you grow is not available locally so it's like any other rare comodity, it would be pricey!!! Remember that when you set your prices you can always come down if you have to but it's really tough to go up so don't start too low.
I hope this helps. Maybe some of the others on this forum can come up with a much better plan.

Bob


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RE: how do i price

I would not start with costs to arrive at a price because that invariably leads to over-pricing and lost sales or underpricing and leaving money on the table. You should first come up with an estimate of a market price by looking at any information you can find like store prices, how much competition is nearby, quality and freshness, etc. and give it a try. If you find that a pound of peas will fetch $5.00, then calculate all your costs except labor and see what your gross profit is. Now take what's left for your grower's share and figure out how much time you have to put in, how many pounds you might sell, and decide if you are willing to work for that. You might have quite a range for different items and may do them all if it makes sense to have a broad selection for your customers.


 
 

 

 


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